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2023 Supreme(Kar) 122

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
M.I. Arun, J.
Nasiruddin Bhagwan, S/o Papulsab Bhagwan - Petitioner
Versus
The State Of Karnataka Represented By Its Secretary Department Of Co-Operative and ors.– Respondents
Writ Petition No. 102307 of 2023 (CS-EL/M)
Decided On : 21-04-2023

Advocates:
Advocate Appeared:
For the Petitioner:Prof.Ravivarmakumar, Sr. Advocate For Sri.Gangadhar J M, Advocate
For the Respondent:Sri. Vinayak Kulkarni, AGA, Sri. I. S. Uppin, Advocate, Sri. Jayakumar S. Patil, Sr. Advocate For K. Anandkumar, Advocate

Point of Law: Rule 14 – AKK of Rules, 1960 reads as no Confidence Motion.

Headnote:

Karnataka Co-operative Societies Rules, 1960 - Rule 14 – AKK, 3(1) and (2) - Moved a no-confidence motion - Written notice - Petitioner is President of 4th respondent Cooperative Society - Respondents No.6 to 14, who are Directors of Society, have moved a no-confidence motion against petitioner – When an allegation is made against any person, he has to be made known of allegations, so that he can defend himself - Para 11.

Finding of the Court:

If a minimum of 1/3rd of said members move a no confidence motion, they need not assign any reason for same - If Registrar is satisfied that said no confidence motion is moved by requisite number of members, he has to give 15 days clear notice to all members including person against whom motion is moved - That gives sufficient time for a person like petitioner to approach Board members and know who are against him and he can convince them to contrary, if he so desires - Fact that petitioner has made only those who have moved motion against him as respondents in instant case and not other Directors, show petitioner is aware as to who are against him - For that reason, in Court opinion, none of rights of petitioner is violated.

Result: Petition dismissed.

ORDER :

1. The petitioner is the President of the 4th respondent Cooperative Society. Respondents No.6 to 14, who are the Directors of the Society, have moved a no-confidence motion against the petitioner. Aggrieved by the same, the present writ petition is filed.

2. The case of the petitioner is that, respondents No.6 to 14 had moved a no-confidence motion against the petitioner on an earlier occasion also and a meeting was called on 09.03.2023. However, this Court in W.P. No.101470/2023, set aside the same on the ground that the same was not held in accordance with law. However, liberty was reserved to respondents No.6 to 14 to move the no-confidence motion again. Subsequent to the order, at the behest of respondents No.6 to 14, no-confidence motion has been moved against the petitioner.

3. It is contended by the petitioner that the present no-confidence motion is also in violation of the law. The no confidence motion is challenged on two grounds;

    i. That the jurisdictional Registrar has taken more than seven days to authorize an Officer for the purpose of presiding over the meeting of the Board called to consider the no confidence motion.

ii. That the authorized Officer has supplied the petitioner only a notice of the meeting of no confidence and the written notice signed by not less than 1/3rd of the members along with a copy of the proposed motion given by them to the Chief Executive of the Society, has not been provided to the petitioner.

4. The respondents submit that the above two grounds does not vitiate the no confidence motion tabled against the petitioner.

5. Rule 14 – AKK of the Karnataka Co-operative Societies Rules, 1960 (hereinafter referred to as ‘the Rules, 1960’ for short) reads as under:

    “14-AKK. No Confidence Motion.-(1) A written notice hereinafter called a no-confidence notice, with intention to take up or move no-confidence motion, signed by not less than one-third of elected members of the board along with a copy of the proposed motion shall be delivered in person to the Chief Executive of the society. A copy of the said notice shall be sent to the jurisdictional Registrar.

(2) The Chief Executive of the society shall send a communication to the jurisdictional Registrar within seven days of the receipt of notice of no-confidence motion.

(3) The jurisdictional Registrar shall within seven days, authorise an officer not below the rank of a Senior Inspector of co-operative societies hereinafter called as authorised officer for this purpose to preside over the meeting of the board called to consider no-confidence motion and conduct all further proceedings in this behalf.

(4) The authorised officer shall give a notice of not less than fifteen clear days of such meeting to all elected members of the board.

(5) The notice shall clearly state the place, date, time and agenda of the meeting.

(6) The service of notice may be effected to the elected members of the board in any of the following manner, namely.-

(a) by giving or tendering it to such person; or

(b) by sending it to their address through registered post.

(7) The quorum for such meeting shall be the number next to fifty per cent of the elected members of the board. All the members attending the meeting shall sign in the book kept for the purpose before commencement of the meeting. The authorised officer shall preside over the meeting. If within one hour after the time fixed for the meeting, the quorum is not formed, the meeting shall stand cancelled and the notice issued as per sub-rule (4) shall stand cancelled.

(8) Save as otherwise provided in the Act or these rules, a meeting of the board convened for the purpose of considering a no-confidence motion under sub-rules (4) and (5) shall not for any reason be adjourned.

(9) As soon as the meeting commences, the authorised officer shall read out to the members of the board, the motion for consideration for which the meeting has been convened and shall put it to vote without any debate.

(10) The votes shall be taken by s

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