Karnataka High Court
H.PUTTAPPA - Appellant
Versus
STATE OF KARNATAKA - Respondent
Decided On : 02-03-78
W.P. : 8461 of 1976
( 1 ) THE following emerge from the separate judgments pronouncer in these cases : (i) It is unanimously held that Sec. 14a of the Karnataka Co-operative Societies act, 1959 is within the competence of the State Legislature under Entry 32 of List II of VII Schedule to the Constitution (ii) It is unanimously held that Sec. 14a of the Act is not void as offending Art. 14 of the Constitution. (iii) It is held in accordance with the majority opinion (Jagannatha shetty, Bopanna and Venkatachala JJ.) that Sec. 14a is not void as offending Art. 19 (1) (c) of the Constitution. It is held in the minority judgment (Malimath and Srinivasa Iyengar jj.) that Sec. 14a is void as offending Art. 19 (1) (c) of the Constitution. (iv) It is held by Malimath and Srinivasa lyengar JJ. that Sec. 14a is not void as offending Art. 31 (1) or Art. 31 (2) of the Constitution. (v) It is held in accordance with the majority opinion (Jagannatha shetty, Bopanna and Venkatachala JJ.) that the principle of audi alteram partem has to be followed while exercising power under Sec. 14a of the act and that the impugned orders made under the said provision are-void they having been made in contravention of the said principle. Malimath and Srinivasa lyengar JJ. have, in their minority judgment, held that the Legislature has, by necessary implication, excluded the principle of audi alteram partem. (vi) It is held by Malimath and Srinivasa lyengar JJ that the impugned orders have to be quashed On the ground that the same have been made by the Deputy Registrar in a mechanical manner and without applying his mind. II. In the result, the impugned orders made under Sec. 14a of the karnataka Co-operative Societties Act, 1959 are hereby quashed. III. The petitioners are entitled to costs from the State. Advocate's fee is fixed at Rs. 250 in each case.
( 2 ) AS in these writ petitions the Constitutional validity of Sec. 14a of the Karnataka Co-operative Societies Act, 1959 (hereinafter referred to as the Act) and the orders made thereunder are challenged and as common questions of law arise for consideration, they were heard together and are being disposed of by this common order.
( 3 ) THE first writ petition is by the members of the. concerned co-operative society, the second is by the members and the co-operative society and the remaining writ petitions are by the concerned co-operative societies. In these cases Sec-14a of the Act and the orders made under the said provision amalgamating two or more cooperative societies have been challenged. In order to appreciate the contentions, a brief summary of the relevant provisions of the Act and the legislative history is necessary.
( 4 ) THE preamble to the Act shows that it was enacted to consolieate and amend the laws relating to Co-operative Societies in the State of karnataka. The principal Act received the assent of the President on the 11th of August, 1959. The expression 'co-operative Society' is defined in sec. 2 (c) of the Act to mean a society registered or deemed to be registered under the Act. Sec. 4 provides that a co-operative society which has as its objects the promotion of the economic interests or general welfare) of its members, or of the public, in accordance with co-operative principles, or a co-operative society established with the object of facilitating the operations of such a society, may be registered It further provides that a co-operative society, shall not be registered if it is likely to be economically unsound, or the registration of which may have an adverse effect on development of the co-operative movement. Sec. 5 provides for registration of the co-operative society with or without un-limited liability. S-6 provides for application for regisration of a co-operative society and enumerates the information to be furnished in the application. Sec. 7 provides that if the Registrar is satisfied (a) that the application complies with the provisions of this Act and the rules; (b) that th
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