Ananth Vs. the State of Karnataka Department of Co-operation and ors. - Court Judgment

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
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		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
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			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
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	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
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		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
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			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
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		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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karnataka co-operative societies act, (act no. 24/2001) - sub-section (4-a) of section 29g-challenge to-whether sub-section (4-a) of section 29g is ultra-vires of sections 28a and 29f of the karnataka cooperative societies act-the newly inserted provision empowers the chief executive to vote in managing committee meetings-held, the said provision empowering the chief executive to vote in managing committee meetings directly runs contrary to the provisions of section 28a, 29c. and section 29f of the act read with rule 14 and 14 (a) of the karnataka co-operative societies rules, 1960-the provision of section 29g (4a) of the act in so far as it relates to providing right to the chief executive to vote is opposed to the provisions of section 28a, 29c and 29f and the entire scheme of the.....

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			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
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			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
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			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
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		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
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		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
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			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
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			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
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		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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ordermohan shantanagoudar, j.1. the petitioner has sought for the following reliefs:a) a writ in the nature of declaration, declaring that sub-section 4a of section 29g introduced by enactment of act no. 24/2001 vide annexure-a is ultra vires of section 28a and 29f of the karnataka co-operative societies act, (herein after called as 'act) 1959.b) a writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide annexure-b passed by the 3rd respondent society as illegal and without authority of law.2. learned counsel for the petitioner sri k.r. sreenivas patavardhan appearing for shanthesh gureddi submits that he is not pressing prayer (b). the said submission is recorded.3. the petitioner has questioned the validity of sub-section (4-a) of.....

Judgment:

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			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
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			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
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			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
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			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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		'appellant' => 'Ananth',
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		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
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		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
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		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
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		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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ORDER

Mohan Shantanagoudar, J.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
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		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
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			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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1. The petitioner has sought for the following reliefs:

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
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		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
			'observations' => null,
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			'prhistory' => '',
			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
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	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
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		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
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			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
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		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
			'observations' => null,
			'overruledby' => null,
			'prhistory' => '',
			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
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			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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	'casename_url' => 'ananth-vs-karnataka-department',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
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		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'prhistory' => '',
			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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	'casename_url' => 'ananth-vs-karnataka-department',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
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		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
			'observations' => null,
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			'prhistory' => '',
			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
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			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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	'casename_url' => 'ananth-vs-karnataka-department',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
			'observations' => null,
			'overruledby' => null,
			'prhistory' => '',
			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
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	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
		'overruledby' => null,
		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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	'casename_url' => 'ananth-vs-karnataka-department',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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The word 'employee' is defined under Section 2(e) of the Act which reads thus:

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
			'observations' => null,
			'overruledby' => null,
			'prhistory' => '',
			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
		'overruledby' => null,
		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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		'circuit' => null
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
)
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employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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	'casename_url' => 'ananth-vs-karnataka-department',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
			'observations' => null,
			'overruledby' => null,
			'prhistory' => '',
			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
		'overruledby' => null,
		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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	'casename_url' => 'ananth-vs-karnataka-department',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
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		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'prhistory' => '',
			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
)
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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
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			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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	'casename_url' => 'ananth-vs-karnataka-department',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
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		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
			'observations' => null,
			'overruledby' => null,
			'prhistory' => '',
			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
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	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
		'overruledby' => null,
		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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2) Notwithstanding anything contained in Sub-section (1):

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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	'casename_url' => 'ananth-vs-karnataka-department',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
			'observations' => null,
			'overruledby' => null,
			'prhistory' => '',
			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
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	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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		'circuit' => null
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
			'observations' => null,
			'overruledby' => null,
			'prhistory' => '',
			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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			'circuit' => null
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
		'overruledby' => null,
		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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		'circuit' => null
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
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		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
			'observations' => null,
			'overruledby' => null,
			'prhistory' => '',
			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
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	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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Section 29G:

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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	'casename_url' => 'ananth-vs-karnataka-department',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
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		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
			'observations' => null,
			'overruledby' => null,
			'prhistory' => '',
			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
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	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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		'circuit' => null
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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	'casename_url' => 'ananth-vs-karnataka-department',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
			'observations' => null,
			'overruledby' => null,
			'prhistory' => '',
			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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			'circuit' => null
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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		'circuit' => null
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
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			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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	'casename_url' => 'ananth-vs-karnataka-department',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
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		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
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	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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		'circuit' => null
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
)
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8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
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			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'prhistory' => '',
			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
			'casesref' => '',
			'citingcases' => '',
			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
			'observations' => null,
			'overruledby' => null,
			'prhistory' => '',
			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
			'ratiodecidendi' => '',
			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
		'observations' => null,
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
		'ratiodecidendi' => '',
		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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		'circuit' => null
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	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
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12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:

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	'title_for_layout' => 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | ',
	'desc' => array(
		'Judgement' => array(
			'id' => '377617',
			'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
			'appealno' => 'Writ Petition No. 24626/2002',
			'appellant' => 'Ananth',
			'authreffered' => '',
			'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
			'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
			'caseanalysis' => null,
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			'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
			'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
			'court' => 'Karnataka',
			'court_type' => 'HC',
			'decidedon' => '2006-03-28',
			'deposition' => 'Petition allowed',
			'favorof' => null,
			'findings' => null,
			'judge' => 'Mohan Shantanagoudar, J.',
			'judgement' => 'ORDER<p style="text-align: justify;">Mohan Shantanagoudar, J.</p><p style="text-align: justify;">1. The petitioner has sought for the following reliefs:</p><p style="text-align: justify;">a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p style="text-align: justify;">b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p style="text-align: justify;">2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p style="text-align: justify;">3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p style="text-align: justify;">The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p style="text-align: justify;">4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p style="text-align: justify;">5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p style="text-align: justify;">Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p style="text-align: justify;">The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p style="text-align: justify;">The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p style="text-align: justify;">employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p style="text-align: justify;">The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p style="text-align: justify;">Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p style="text-align: justify;">6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p style="text-align: justify;">Section 21:</p><p style="text-align: justify;">1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p style="text-align: justify;">2) Notwithstanding anything contained in Sub-section (1):</p><p style="text-align: justify;">a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p style="text-align: justify;">b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p style="text-align: justify;">3) x x x x x</p><p style="text-align: justify;">The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p style="text-align: justify;">7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p style="text-align: justify;">Section 29G:</p><p style="text-align: justify;">1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p style="text-align: justify;">xxxxxxx</p><p style="text-align: justify;">(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p style="text-align: justify;">(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p style="text-align: justify;">The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p style="text-align: justify;">8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p style="text-align: justify;">9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p style="text-align: justify;">10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p style="text-align: justify;">11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p style="text-align: justify;">12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p style="text-align: justify;">',
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			'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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			'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
			'sub' => 'Trusts and Societies',
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$title_for_layout = 'Ananth Vs the State of Karnataka Department of Co Operation and ors - Citation 377617 - Court Judgment | '
$desc = array(
	'Judgement' => array(
		'id' => '377617',
		'acts' => 'Karnataka Co-operative Societies Act - Sections 2, 21, 28A, 28A(6), 29, 29C, 29F, 29G, 29G(4), 29G(4A) and 128A; Karnataka Co-operative Socieities Rules, 1960 - Rules 13, 14, 14A, 14A(12)(13)(14), 14(3) and 18(2)',
		'appealno' => 'Writ Petition No. 24626/2002',
		'appellant' => 'Ananth',
		'authreffered' => '',
		'casename' => 'Ananth Vs. the State of Karnataka Department of Co-operation and ors.',
		'casenote' => 'KARNATAKA CO-OPERATIVE SOCIETIES ACT, (ACT NO. 24/2001) - SUB-SECTION (4-A) OF SECTION 29G-CHALLENGE TO-WHETHER SUB-SECTION (4-A) OF SECTION 29G IS ULTRA-VIRES OF SECTIONS 28A AND 29F OF THE KARNATAKA COOPERATIVE SOCIETIES ACT-The newly inserted provision empowers the Chief Executive to vote in managing committee meetings-HELD, The said Provision empowering the Chief Executive to vote in managing committee meetings directly runs contrary to the provisions of Section 28A, 29C. and Section 29F of the Act read with Rule 14 and 14 (a) of the Karnataka Co-operative societies Rules, 1960-The provision of Section 29G (4A) of the Act in so far as it relates to providing right to the Chief Executive to vote is opposed to the provisions of Section 28A, 29C And 29F and the entire scheme of the Act-Thus, the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal and the same is liable to be struck down.;Writ Petition is allowed. - CODE OF CIVIL PROCEDURE, 1908. Order 37, Rule 3(5) :[Arali Nagaraj, J] Leave to defend - Plaiantiff company seeking recovery of amount due from defendants - Defendants had supplied goods to plaintiff which were not found to be of standard quality - Defenadnts raised triable issue suit which require full-fledged trial However, defence raised by them in respect of admitted part of claim of plaintiff besides being sham and illusory was not supported by specific facts - Held, Therefore defendants though entitled to unconditional leave to defend, same is restricted to disputed portion.  -  3) x x x x x The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. He may even involve in politics relating to society affairs, which is clearly prohibited. 12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down.',
		'caseanalysis' => null,
		'casesref' => '',
		'citingcases' => '',
		'counselplain' => 'K.R. Sreenivas Patavardhan, Adv. for ;Shantesh Gureddi, Adv.',
		'counseldef' => 'B. Srinivasagowda, AGA for R-1 and 2, ;Dayananda S. Patil, Adv. for R-3 and ;H.S. Sureshappa Gowda, Adv. for R-4',
		'court' => 'Karnataka',
		'court_type' => 'HC',
		'decidedon' => '2006-03-28',
		'deposition' => 'Petition allowed',
		'favorof' => null,
		'findings' => null,
		'judge' => 'Mohan Shantanagoudar, J.',
		'judgement' => 'ORDER<p>Mohan Shantanagoudar, J.</p><p>1. The petitioner has sought for the following reliefs:</p><p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.</p><p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.</p><p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.</p><p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:</p><p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. </p><p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.</p><p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:</p><p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. </p><p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.</p><p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:</p><p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution</p><p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.</p><p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.</p><p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:</p><p>Section 21:</p><p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.</p><p>2) Notwithstanding anything contained in Sub-section (1):</p><p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;</p><p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.</p><p>3) x x x x x</p><p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.</p><p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:</p><p>Section 29G:</p><p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.</p><p>xxxxxxx</p><p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.</p><p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.</p><p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.</p><p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.</p><p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.</p><p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.</p><p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.</p><p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:</p><p>',
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		'prhistory' => '',
		'pubs' => 'ILR2006KAR1900; 2006(3)KarLJ428',
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		'respondent' => 'The State of Karnataka Department of Co-operation and ors.',
		'sub' => 'Trusts and Societies',
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$ctype = ' High Court'
$content = array(
	(int) 0 => 'ORDER<p>Mohan Shantanagoudar, J.',
	(int) 1 => '<p>1. The petitioner has sought for the following reliefs:',
	(int) 2 => '<p>a) A writ in the nature of declaration, declaring that sub-section 4A of Section 29G introduced by enactment of Act No. 24/2001 vide Annexure-A is ultra vires of Section 28A and 29F of the Karnataka Co-operative Societies Act, (herein after called as 'Act) 1959.',
	(int) 3 => '<p>b) A writ in the nature of mandamus directing the 2nd respondent to declare that the resolution dated 9.4.2002 vide Annexure-B passed by the 3rd respondent society as illegal and without authority of law.',
	(int) 4 => '<p>2. Learned Counsel for the petitioner Sri K.R. Sreenivas Patavardhan appearing for shanthesh Gureddi submits that he is not pressing prayer (b). The said submission is recorded.',
	(int) 5 => '<p>3. The petitioner has questioned the validity of Sub-section (4-A) of Section 29G which is inserted by Act No. 24/2001 with affect from 5.9.2001 on the ground that the same is ultra vires of Sections 28A and 29F of Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is relevant to note the provision of Sub-section (4-A) of Section 29G of the Act which reads thus:',
	(int) 6 => '<p>The Chief Executive shall have right to attend every meeting of the society and the committee thereof and to take part in the decision and to move any resolution or to vote. ',
	(int) 7 => '<p>4. During the course of arguments, it is submitted by the learned Counsel for the petitioner that he restricts his prayer for striking down the aforesaid provision in so far as it relates to providing right for the Chief Executive of the society to vote. Thus this petition is confined only to (sic) said portion of the aforesaid provision relating to the right of voting provided to the Chief Executive.',
	(int) 8 => '<p>5. The word 'Chief Executive' is defined in Section 2(a) of the Act which reads thus:',
	(int) 9 => '<p>Chief Executive means any employee of a co-operative Society by whatever designation called and include an official of the State Government, an employee of any other institution or co-operative Society who discharges the functions of Chief Executive under the Act, rules or the bye-laws. ',
	(int) 10 => '<p>The aforesaid defination makes it amply clear that the Chief Executive is an employee of Co-operative Society by whatever designation he is called. It may be mentioned that generally he is called as Secretary of Society or Manager of Co-operative Bank etc.',
	(int) 11 => '<p>The word 'employee' is defined under Section 2(e) of the Act which reads thus:',
	(int) 12 => '<p>employee' means a salaried employee of a co-operative society and includes an official of the state Government or any employee of any other institution',
	(int) 13 => '<p>The aforesaid defination further makes it clear that the employee is a salaried employee of co-operative society.',
	(int) 14 => '<p>Thus the definitions of 'Chief Executive' and 'employee' if read harmoniously and conjointly, would make it clear that the Chief Executive is a salaried employee of the society.',
	(int) 15 => '<p>6. The newly inserted provision of Sub-Section (4-A) of 29G of the Act by Act No. 24/2001 which is impugned in this writ petition empowers the Chief Executive to vote in Managing Committee meetings. In my considered opinion, the said provision empowering the Chief Executive to vote in Managing Committee meetings directly runs contrary to the provisions of Section 28A, 29C and Section 29F of the Act read with Rule 14 and 14(a) of the Karnataka Co-operative Socieities Rules, 1960 (herein after called as rules), Section 21 of the Act reads thus:',
	(int) 16 => '<p>Section 21:',
	(int) 17 => '<p>1) Every member, every delegate and other nominee shall exercise vote in person and not by proxy.',
	(int) 18 => '<p>2) Notwithstanding anything contained in Sub-section (1):',
	(int) 19 => '<p>a) the committee of a co-operative society which is a member of another co-operative society may appoint one of its members to vote on its behalf in the affairs of that other society;',
	(int) 20 => '<p>b) where the Life Insurance Corporation of India, the state warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society.',
	(int) 21 => '<p>3) x x x x x',
	(int) 22 => '<p>The aforesaid provision clearly mentions that every member, every delegate or every nominee shall exercise his vote in person and not by proxy, which means hat only the member delegate or nominee are entitled to vote. Except the aforesaid persons, no other person is allowed to vote in the elections of Co-operative Society. It is needless to observe that the said provision does not authorise or empower the Chief Executive of the society to vote.',
	(int) 23 => '<p>7. The matters relating appointment, service conditions and functions of Chief Executive are detailed under Section 29G of the Act, the relevant portions of which read as follows:',
	(int) 24 => '<p>Section 29G:',
	(int) 25 => '<p>1) For every co-operative society there shall be Chief Executive who shall subject to the provisions of Section 128A be appointed and be removable by the society.',
	(int) 26 => '<p>xxxxxxx',
	(int) 27 => '<p>(3) salary and other conditions of service of the Chief Executive shall, - (i) in the case of an official of the State Government be as approved by the State Government; and (ii) in other cases, be as approved by the registrar: provided that where a cadre for the post of Chief Executive common to any of co-operative societies has been created under Section, 128A, the recruitment, appointment and other conditions of service of persons appointed to such posts including the person appointed before the creation of such service, shall be governed by the provisions of that section and the regulations made in that behalf.',
	(int) 28 => '<p>(4) The Chief Executive shall be the Chief Administrator of the society and shall, subject to the general provision and control of the committee and such other conditions and restrictions as may be specified in the bye-laws.',
	(int) 29 => '<p>The aforesaid provisions disclose that the Chief Executive shall be the Chief Administrative officer of the society who will be appointed and be removable by the society except under certain circumstances as enumerated in proviso to Sub-section (1) of Section 29G. He shall perform functions under the general supervision and control of the Managing committee of the Society. Age of retirement of Chief Executive is fixed at 58 years under Rule 18(2) of Rules. He is also controlled by other conditions and restrictions as may be specified in the bye-laws of the society. Thus the Chief Executive Officer is only an executive officer of the society and he will have to work under the general supervision and control of the Managing Committee. Thus it is evident from the aforesaid provisions that the Managing Committee is superior to Chief Executive Officer. In other words, the Chief Executive Officer cannot be elevated to the status of the Managing Committee member of the society. If it is so, the impugned provision which accords right to the Chief Executive to vote in the Managing Committee clearly runs contrary to Section 29G(4) of the Act. If right to vote, which is exclusive right of Managing Committee members, is granted to the Chief Executive, practically he is elevated to the position of Managing Committee.',
	(int) 30 => '<p>8. As could be seen from Section 28A of the Act, the management of the Co-operative Society vests in the Managing Committee. The Managing Committee is elected as per Rules 13 and 14 of Karnataka Co-operative Societies Rules. The election of members of the committee is by general body. The Voters' list will be prepared by the Chief Executive after publishing the list of defaulters as per Rule 14(3)(iv) of the Rules. Thus only the eligible members of the Society will have the right to vote and contest to the elections of the Managing Committee. Consequently the elected members of the Managing Committee will be only from among the members (General Body) of the society. I may hasten to add here itself that the Government may nominate members to the Managing Committee of the assisted Co-operative society Under Section 29 of the Act. Thus only the elected members and the nominated members will constitute the Managing Committee, Rule-14A of the Rules mandates the Chief Executive to convene the meeting of all the members of committee for electing office bearers. Section 28A(6) of the Act and Rule 14A(12)(13)(14) of the Rules require only the Managing Committee members to vote for electing office bearers of society by secrete ballot. These provisions amply disclose that the Chief Executive should work as principal officer/ employee of society in letter and spirit and assist Co-operative Society concerned and the Government as prescribed under the Act. As aforesaid the management vests in committee as per Section 28A of the Act whereas Section 29G(4A) of the Act practically treats the Chief Executive as the Managing Committee member in as much as he is given right to vote in the committee, which is highly illegal, arbitrary and against the scheme of the Act.',
	(int) 31 => '<p>9. It is also relevant to note at this stage the provision of Section 29C(i)(e) of the Act which clarifies that no person shall be eligible for being elected or appointed or continued as a member of any Cooperative society if he is a paid employee of such co-operative society or of its financing bank. As affronted. the Chief Executive is a paid employee of the society. If it is so, he is not eligible for being appointed or continued as member of committee of a co-operative society, In other words, he is disqualified to be appointed as a Managing Committee member. As Section 29G(4A) practically elevates and equates the Chief Executive to the position of the Managing Committee member, the said provision runs contrary to Section 29C of the Act also.',
	(int) 32 => '<p>10. Looking to the scheme of the Act, it is clear that the Chief Executive being a paid employee of the society cannot cast his vote while passing the resolution or in electing the office bearers of society. If he is allowed to vote, then he will be entitled to take policy decisions which is entirely within the realm or domin of the Managing Committee and General body of the society. The Chief Executive/Administrative Officer is required to execute or implement the resolutions passed by the Managing Committee, but himself cannot pass the resolutions. The duty of the Chief Executive is to conduct the Committee or Board proceedings and to conduct election. His powers and duties are also specifically provided in Section 29G(4) of the Act. As a Chief Executive, he is answerable to the Managing Committee. Under such a situation, if he is allowed to vote in Committee Meetings, it will totally affect the democratic system of Co-operative Society. He may even involve in politics relating to society affairs, which is clearly prohibited. Thus the impugned amendment by which right to vote is accorded to the Chief Executive, is opposed to Co-operative movement and scheme of main Act.',
	(int) 33 => '<p>11. In view of the aforesaid discussion, it is clear that the provision of Section 29G{4A) of the Act in so far as it relates to providing right to the Chief Executive to vole is opposed to the provisions of Section 28A, 29G and 29F and the entire scheme of the Act. Thus the same is ultra vires of the provisions of Section 29F, 28A and 29C of the Act and consequently the same shall have to be declared illegal.',
	(int) 34 => '<p>12. In view of the above, this Court is of the opinion that the newly inserted provision of Section 29G(4A) in so far as it relates to empowering the Chief Executive to vote in Managing Committee meetings is bad in the eye of law and the same is liable to be struck down. Hence the following order is made:',
	(int) 35 => '<p>'
)
$paragraphAfter = (int) 1
$cnt = (int) 36
$i = (int) 35
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