Point of Law: Section 29B of KCS Act is reproduced resignation of member of a board or office-bearer of a Co-operative Society.

ORDER :

1. The petitioner is before this Court seeking for the following reliefs:

i. Issue a writ in the nature of certiorari quashing the order passed by the respondent no.3 dated 06.03.2022 in No. SANI-34. CHUNAVANE/VISHESHADIKARI/31/2022-23 is produced at Annexure-C.

ii. To pass such other writ, order or direction as this Hon’ble Court deems fit under the circumstances of the case.

2. The grievance of the petitioner is that a Special Officer has been appointed in respect of respondent No.4-Society without waiting for 15 days period prescribed under Section 29(B) of the Karnataka Cooperative societies ACT, 1959 (for short ‘KCS ACT’).

3. Sri. Devi Prasad Shetty., learned counsel for the petitioner, submits that on 6.3.2023, five directors had submitted their resignation, and there being no quorum, respondent No.2 exercised powers Under subsection (1) of Section 31 and appointed a Special Officer. He submits that the power to appoint a Special Officer under subsection (1) of Section 31 has to be made only if the requirement under Section 29(B) is fulfilled. Without such fulfilment, no power under sub-section (1) of Section 31 can be exercised. Out of the five directors who had submitted their resignation, he submits that on 8.3.2023, petitioners No. 7 and 8 had withdrawn their resignations; thereby, the quorum was available for the holding of the next meeting. This fact, having occurred on 8.3.2023 within a period of 15 days, respondent No.3 has acted in haste under sub-section (1) of Section 31 and in that background, he submits that the reliefs sought are required to be granted.

4. Learned AGA would, however submit that in terms of sub-section (1) of Section 31, a non-obstante clause is present where the Registrar has been provided with powers to appoint a Special Officer notwithstanding anything contained in the Act, Rules and bye-laws for a period not exceeding six months. It is in that basis she submits that the appointment of a Special Officer cannot be circumscribed by the requirement under Section 29B, and as such, the appointment is proper and correct. She further submits that an order passed under sub-section (1) of Section 31 is an appealable order in terms of Section 106 (1)(e)(1), and as such, the petitioner may be relegated to the alternative remedy of an appeal under the said Section 106.

5. Heard Sri. Devi Prasad Shetty., learned counsel for the petitioner and Smt. A.R.Sharadamba., learned AGA for respondents No.1 to 3. Pursued papers.

6. The short question that would arise for consideration of this Court in the present matter is whether the non-obstante clause in subsection (1) of Section 31 can confer power on respondent No.3 to be exercised dehors the requirement under Section 29B of the KCS Act?

7. Section 29B of the KCS Act is reproduced hereunder for easy reference;

29B. Resignation of member of a board or office-bearer of a Co-operative Society.-A member of the board of a Co-operative Society or an office-bearer of a Co-operative Society, may resign his membership of the board or as an office-bearer of a society, as the case may be, in writing under his hand addressed to the Chief Executive and it shall become vacant on the expiry of fifteen days from the date of such communication unless within the said period of fifteen days such member of the board or office bearer withdraws such resignation in writing under his hand and addressed to the Chief Executive. The Chief Executive shall place the letter of resignation before the meeting of the board convened next after the communication of such letter. If the member who has resigned, is a nominated member of the society, the chief executive shall inform the nominating society immediately on receipt of the resignation letter.

8. A perusal of the above provision would indicate that any member of the Board of a Co-operative Society or office bearer may resign his membership in writing in his hand addressed to Chief Executive but further provides that the said post shall