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SURAJ GOVINDARAJ
Kamalamma W/o Mahalingaiah – Appellant
Versus
State Of Karnataka, Department Of Co-Operation, M. S. Building, Bengaluru – Respondent
ORDER :
1. The petitioners are before this Court seeking for the following reliefs:
ii. Issue a writ in the nature of certiorari set aside the impugned order dated 21.11.2024 in 29C case No.SaNe40/Dispute/29C/17/2024-25, vide Annexure-Defendant passed by respondent No.2.
iii. Pass such other orders as may be appropriate in the facts and circumstances of the case, in the ends of justice and equity."
2. The petitioners claim to be elected directors of respondent No.3-Society. A complaint had been filed against the petitioners on 28.10.2024, based on which a show cause notice came to be issued by respondent No.2 on 11.11.2024 under Section 29C of the Karnataka Co-operatives Society Act, stating that as per Byelaw 38 (8) for the Director to continue with the Directorship of the Society, He/She has to supply milk for a minimum of 180 days of the previous Co-operative year and hearing was fixed on 21.11.2024.
3. The petitioners appeared on 21.11.2024, however, it is alleged that on the very same date without providin
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.
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.
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 court ruled that decisions lacking reasoned justification and not adhering to natural justice principles are arbitrary, warranting annulment and re-evaluation of the case.
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.
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