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2019 Supreme(Kar) 1867
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
ALOK ARADHE, N.S. SANJAY GOWDA, JJ.
SIDDAPPA MADIVALAPPA UGARKHOD, OCC. AGRICULTURE R/O DEGAON, KITTUR - Petitioner
Vs.
BASAVARAJ KALLAPA KUGATI - Respondent
WA.NOs.100628-636/2019 (CS-EL/M) AND WA.NOs.100637-100638/2019
Decided On : 10-12-2019
For the Petitioner: SRI.A R.HEGDE, SRI ANOOP G.DESHPANDE, AND SRI PRAVEEN.G.KULKARNI, ADVS.
For the Respondent:SRI.F.V.PATIL, ADVOCATE AND SRI NANDISH PATIL, ADV. FOR SRI HEMANTHKUMAR L.HAVARAGI, ADV. SMT. K.VIDYAVATHI, ADDL. ADV. GEN.
Headnote:
Karnataka Co-operative Societies Act, 1959 – Sections 8, 106, 17, 16, 2 – Constitution of India, 1950 – Article 19 – Elections – Conduct First General Meeting of Society – Validity of order – In this intra Court appeal appellants have assailed validity of order passed by Single Judge by which writ petitions preferred by respondents are allowed and direction issued by appellate authority and Election Officer for enrolling of new members and permitting them to participate in election of society has been quashed. – Single Judge has further directed Election Officer to prepare voters list and to conduct First General Meeting of Society as expeditiously as possible and hold elections of Society on or before 25.12.2019. – It is further directed that respondent No.6 to 16 and all others who wish to enroll themselves as members of Society are at liberty to make an application in accordance with law before board of Society – Held, Words “such orders thereon as it may be deem fit” have to be read in context of object of Act namely to promote voluntary formation, autonomous functioning, democratic control and professional Management of co-operative societies. If any other interpretation is permitted, same would enable Chief Promoter to pick up persons to form a co-operative society to manage affairs of co-operative society in its own way by keeping at bay all other eligible candidates. – Appellate authority, in our considered opinion and for reasons assigned supra, has power to direct Chief Promoter to consider applications which may be submitted for membership in accordance with extant Rules. – Court is not inclined to accept finding recorded by learned single Judge that Appellate Authority under Section 106(4) of Act has no power to direct Chief Promoter to enroll new members. – Court hold that after registration of society till holding of first general body meeting, new members can be enrolled as members of co-operative society – It is not in dispute that share capital of Rs.18,00,000/-is in account of society. – Appellants are directed to submit an application to Chief Promoter within a period of two weeks from date of receipt of certified copy of order passed today. – Chief Promoter on receipt of aforesaid applications, which may be filed by appellants, shall decide same strictly in accordance with Rules and byelaws of society – Impugned order passed by single Judge insofar as it pertains to quashing of directions to enroll new members is hereby quashed. – Needless to state that Returning Officer namely respondent No.4 shall hold fresh elections after decision is taken by Chief Promoter on application seeking membership of appellants and other applicants. – Appeals Disposed of.
JUDGMENT :
The appeals are admitted for hearing. With consent of learned counsel for the parties, same is heard finally.
2. In this intra Court appeal the appellants have assailed validity of the order dated 22.11.2019 passed by the learned Single Judge by which writ petitions preferred by the respondents are allowed and the direction issued by the appellate authority and the Election Officer for enrolling of new members and permitting them to participate in the election of the society has been quashed. The learned Single Judge has further directed the Election Officer to prepare voters list and to conduct the First General Meeting of the Society as expeditiously as possible and hold the elections of the Society on or before 25.12.2019. It is further directed that respondent No.6 to 16 and all others who wish to enroll themselves as members of the Society are at liberty to make an application in accordance with law before the board of the Society.
3. In order to appreciate the appellants’ challenge to the impugned order, few facts need mention which are stated infra;
4. The appellant No.6 submitted an application before the Deputy Registrar of Co-operative Societies, Belagavi to establish a new Co-operative Bank in the name of Kittur Taluka Prathamika Sahakari Krishi Mattu Grameena Abhivrudhi Bank in Kittur. The aforesaid application was rejected. On 14.08.2018, on the basis of proposal submitted by respondent No.1, Kittur Taluka Prathamika Sahakari Krishi Mattu Grameena Abhivrudhi Bank in Kittur was registered under Section 8 of the Karnataka Co-operative Societies Act, 1959 (herein after referred to as ‘Act’). The appellants being aggrieved filed an appeal under Section 106 of the Act, challenging the registration of the Society. The aforesaid appeal was disposed of by an order dated 18.09.2017. The Appellate Authority upheld the order of the registration of the Society. However, the Appellate Authority granted the permission to the appellant to move an application seeking membership before the Chief Promoter and the Chief Promoter was directed to decide the application in accordance with the rules. Being aggrieved, respondent Nos.1 and 2 filed a writ petition in which challenge was made to the order dated 18.12.2018 passed by the Appellate Authority. During the pendency of the petition, the respondent No.6 published calendar of events by which elections of the society were sought to be held on 03.09.2019. The learned Single Judge by an ad-interim order dated 09.09.2019 permitted the elections to be conducted to the board of new society subject to the fulfillment of certain conditions however the declaration of the result of elections was prohibited until further orders from the Court.
5. The elections were held on 29.09.2019 and only eligible persons were allowed to vote and persons who were disqualified in terms of Section 17(1)(c) of the Act were not allowed to cast vote. The learned Single Judge by an order dated 22.11.2019 allowed the writ petitions and set aside the impugned order dated 18.12.2018 passed by the Appellate Authority, as well as the voters list prepared on 31.08.2019. The voters list prepared in pursuance of the interim order in the writ petitions was also quashed. The learned Single Judge directed the respondent No.4-Returning Officer to hold First General Meeting of the respondent No.2-Society and to announce the result of the elections of the first Board of the Society on or before 25.12.2019 subject to the condition that the voters list shall contain only the names of the pre-registration members approved by the Registering Authority annexed to the Certificate of Registration dated 14.08.2018. In the aforesaid background, these intra Court appeals have been filed.
6. Learned counsel for the appellants submitted that the fundamental right to form a Co-operative Society guaranteed under Article 19(1)(c) of the Constitution of India includes right to run and manage Co-operative Society as well as for participa
