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S. SUNIL DUTT YADAV
G Nagaraju, S/O Late Gangavenkataiah – Appellant
Versus
Assistant Registrar Of Co-Op Societies – Respondent
ORDER :
The present petition has been filed by the Director of the Janagere Primary Agricultural Credit Co-operative Society Ltd., calling in question the correctness of the order dated 11.09.2020 at Annexure-'G' disqualifying the petitioner in exercise of power under Section 29-C(1)(a) of the Karnataka Co-operative Societies Act, 1959 (for brevity 'the Act').
2. The facts relevant to the present adjudication is that the petitioner was elected as Director of the respondent No.4 Society on 16.02.2020. A complaint was stated to have been made by Ganga Rangaiah s/o late Ganga Boraiah on 19.05.2020 alleging that the petitioner was a defaulter not having cleared his loan dues to the Society as on the relevant date when he was elected as a Director and hence, ought to have been disqualified.
3. The details of the defaults as made out and extracted in the impugned order are extracted as hereinbelow:-
4. While notices were issued to the petitioner on 17.07.2020, 28.07.2020 and 10.08.2020, reply was made out by appearing on 28.08.2020 stating that he had cleared the dues and hence was not a defaulter and question of disqualification did not arise.
5. The Assistant Registrar of Co-operative Socie
A member of a co-operative society remains disqualified for defaulting on dues at the time of election, even if the dues are cleared subsequently.
The interpretation of Rule 44(1)(c)(1) of the Kerala Co-operative Societies Rules, emphasizing the prescribed period of three months for disqualification based on loan default.
Directors of a co-operative society are disqualified from voting and continuing in office if they admit to not fulfilling minimum service requirements as per the society's bylaws.
Non-compliance with procedural notice requirements for disqualification under cooperative rules can invalidate such orders.
Section 29-C of the Karnataka Co-operative Societies Act applies to individual misconduct, not collective board decisions; thus, disqualifying directors for collective actions is improper.
The main legal point established in the judgment is that the by-law no.44(5) was not inconsistent with the provisions of the Maharashtra Cooperative Societies Act, 1960, and the petitioner had alread....
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