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.

ORDER :

1. The petitioners are before this Court seeking for the following reliefs:

i. "Issue a writ in the nature of certiorari set aside the impugned order dated 21.11.2024 in 29C case No.SaNe40/Dispute/29C/18/2024-25, vide Annexure-C passed by respondent No.2.

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 providing an opportunity the impugned order dated 21.11.2024 at Annexures-C and D have been passed. Disqualifying the petitioners, it is challenging the same petitioners are before this Court.

4. The submission of Sri. Sandesh T.B., learned counsel for the petitioners is that under Section 29C of the Karnataka Co-operatives Society Act, disqualification can be made only for the next election and not for voting in the present election and there is no sufficient opportunity which has been granted to the petitioners to place on record the documents in support of their defence.

5. Learned Additional Government Advocate has filed a memo enclosing two letters submitted by the petitioners, wherein the petitioners themselves had categorically stated that the allegations made in the complaint as also in the show-cause notices that the petitioners have not supplied milk for 180 days are true, however, they sought time to appoint an advocate.

6. He submits that once admission has been made as regards the allegations being true the said admission would disentitle the petitioners from casting their vote at the Annual General Meeting or election of the members of the board of the Co-operatives Society in terms Clause (a) V of Subsection (2) of Section 20 of the Karnataka Co-operatives Society Act 1959. In terms of Section 29C (1-H), a Director who is disentitled to vote as a member would stand automatically disqualified since such a Director cannot continue as a member of the Board of the Co-operatives Society.

7. He submits that the petitioners not having utilized the minimum services as required under the Bylaws and not having supplied milk for 180 days. Clause (a-5) of Subsection (2) Section 20 being applicable, Section 29C would also become automatically applicable in view of a specific coverage of the same in Clause(H) of Subsection (1) of Section 39C. On the above grounds, he supports the order passed by respondent No.2 and he submits that the above petition may be dismissed.

8. Heard Sri. Sandesh T.B., learned counsel for the petitioners and Sri. Yogesh D. Naik, learned Additional Government Advocate for respondents Nos.1 and 2 and Sri. K.R. Sathish, learned counsel for respondent No.3 adopts the submission of the learned Additional Government Advocate. Perused the records.

9. The short question that would arise for consideration in the present matter is whether once a member is disentitled to vote under Subsection (2) of Section 20 would disqualification under Section 29C be applicable for the present term of Directorship.

10. Clause (a-v) of Subsection (2) of Section 20 of the Karnataka Co-operatives Society is reproduced here under for easy reference:

"(1)a member or a representative who has failed to utilize such minimum services or facilities in a co-operatives year a