2003 Supreme(Kar) 282
Karnataka High Court
M.H.GAWALI - Appellant
Versus
STATE OF KARNATAKA - Respondent
Decided On : 03-20-03
W.P. : 22483 of 2002
M.N.RAMANJANEYAGOWDA, SUBASH B.ADI
Headnote:Appointment of Special Officer
Articles 226 &227 - Article 226 & 227 -Karnataka Co-operative Societies Act, 1959, Sections 31, 64 & 70 -Special Officer -appointed in place of elected body -continued beyond 6 months -held to be illegal.
[H. L. Dattu, J.] - The second respondent authority without assigning any reasons whatsoever has extended the period of appointment of a Special Officer from 5.3.2002 for a further period of six months. This action of the second respondent authority is not only arbitrary, illegal but also contrary to the statutory provisions. Therefore, the said order cannot be sustained by the Court.
Case Referred: 1984 Suppl SCC 196.
Supersession of elected body
KARNATAKA
CO-OPERATIVE SOCIETIES ACT, 1959
Sections 31, 64 & 70 -Co-operative society - Election to elect Managing Committee - dispute filed to the Deputy Registrar - election set side - appeal - pending -Special Officer appointed - WP filed - interim stay granted -Special Officer continued to manage the affairs -power to appoint special officer -only for six months after obtaining approval from the Govt. -not complied - extended the term beyond six months -held to be illegal.
[H. L. Dattu, J.] - The impugned order date 5.3.2002 issued by the second respondent authority cannot be sustained by the Court, for the reason, that the said order was not proceeded by a prior approval of the State Government: A bare perusal of the order would clearly demonstrate that the second respondent authority without assigning any reasons whatsoever has extended the period of appointment of a Special Officer from 5.3.2002 for a further period of six months. This action of the second respondent authority is not only arbitrary, illegal but also contrary to the statutory provisions. Therefore, the said order cannot be sustained by the Court
Case Referred:
1984 Suppl. SCC 196.
( 1 ) PETITIONER claims that he is the President of Sri Basaveshwara Urban co-operative Bank Limited, Ranebennur, Haveri District. The Bank is registered under the provisions of Karnataka Co-operative Societies Act, 1959 ('act' for short ).
( 2 ) THE expression 'co-operative Bank' finds a place in the dictionary clause of the Act. It means, a Co-operative Society doing the business of banking. 'co-operative Society' is also defined to mean a society registered or deemed to be registered under the Act.
( 3 ) THE brief history of the case. On 11-3-2000, elections were held to elect the managing committee of the aforesaid Co-operative Society for a period of five (5) years commencing from 2001-02, 2002-03, 2003-04 and 2004-05 (co-operative years ). In the said elections, ten (10) members were elected for the committee of the management of the Co- operative society.
( 4 ) AN unsuccessful candidate in the elections held, had filed a dispute before the Deputy Registrar of Co-operative Societies, Haveri District, haveri, under Section 70 of the Act in dispute Nos. 223 and 224/1999-2000.
( 5 ) THE Deputy Registrar, after hearing the parties to the Us, by his order dated 29-8-2001, was pleased to allow the dispute and was further pleased to set aside the elections that were held to the Co-operative society on 11-3-2000.
( 6 ) AGGRIEVED by the aforesaid order, petitioner herein and others have filed an appeal before the Karnataka Appellate Tribunal in Appeal No. 764 of 2001. The appeal is dated 4-9-2001. Along with the appeal, an application for interim order is also filed. The said application was posted for consideration and decision before the Appellate Tribunal on 6-9-2001. But on that date, the application could not be heard by the appellate Tribunal. Therefore, the matter had been adjourned to 7-9-2001.
( 7 ) ON 7-9-2001, the Appellate Tribunal was pleased to hear the application filed by the petitioner herein and others (appellants before the appellate Tribunal) and also the contesting private respondents, and thereafter had reserved the matter for orders and accordingly, the matter was adjourned to 12-9-2001.
( 8 ) IN the meanwhile, the Deputy Registrar of co-operative Societies, Haveri District, on 6/7-9-2001 frames an order under Section 31 (1) of the Act and appoints a Special Officer to manage the affairs of the Co-operative Society. The Special Officer assumes charge on 7-9-2001. Aggrieved by the aforesaid order made by the Deputy Registrar dated 6/7-9-2001, petitioner herein has filed a petition before this Court in W. P. No. 34669 of 2001. This Court while entertaining the writ petition by its order dated 11-9-2001 grants an interim order of stay, staying the orders made by the Deputy Registrar in appointing the Special Officer. That interim order is still in force, but the Special Officer continues to manage the affairs of the society on the pretext that the interim order was passed by this Court after he had assumed the charge. Be that as it may.
( 9 ) ON 12-9-2001, the Karnataka Appellate Tribunal stays the orers made by the Deputy Registrar of Co-operative Societies in dispute Nos. 223 and 224/1999-2000, dated 29-8-2001. Thereby the order made by the deputy Registrar is kept in suspended animation.
( 10 ) ON 25-9-2001, the Deputy Registrar directs the Special Officer to secure the books of accounts, ledgers, etc. , maintained by the Co- operative society. In turn, the Special Officer addresses a letter dated 26-9-2001 asking the petitioner and others to hand over the books of accounts, ledgers, etc. , of the Co-operative Society. Even that letter of the Special Officer was questioned by the petitioner before this Court in w. P. Nos. 37078 and 37079 of 2001, This Court while entertaining the writ petitions grants an interim order of stay on 3-10-2001.
( 11 ) BY yet another order dated 5-3-2002, the Deputy Registrar exercises his powers under Section 31 (1) of the Act and extends the term of appointment o